Year 9

Compound appreciation and depreciation (Part 1)

Year 9

Compound appreciation and depreciation (Part 1)

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Lesson details

Key learning points

  1. In this lesson, we will learn about elements of compound appreciation and depreciation.

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This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.

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5 Questions

Q1.
What would the value of £300 become if it grew by 5% and then another 5%?
£305
£310
£330
Correct answer: £330.75
Q2.
If an antique appreciates by 6% per year for 11 years, the decimal multiplier would be 1.06^11.
False
Correct answer: True
Q3.
If I want to find the 'original' price of something that is currently in a sale and has 40%, I always need to find 100% of the amount to work out the original price.
False
Correct answer: True
Q4.
If I start with a number, increase it by 30% and then decrease it by 30%, I get back to the original number.
Correct answer: False
True
Q5.
The decimal multiplier to increase an amount by 6% for 5 years would be...
1.06 x 5
Correct answer: 1.06^5
1.6 x 5
1.6^5

5 Questions

Q1.
Decreasing £100 by 5% for 8 years would give a final balance of...
£147.75 (to the nearest penny)
£60.00 (to the nearest penny)
Correct answer: £66.34 (to the nearest penny)
£66.35 (to the nearest penny)
Q2.
If I deposited £500 in a bank account and left it there for 6 years at a rate of 4% compound interest, how much would I have at the end of the 6 years?
£524.00 (to the nearest penny)
£620.00 (to the nearest penny)
Correct answer: £632.65 (to the nearest penny)
£632.66 (to the nearest penny)
Q3.
If an antique was originally bought for £55 and grew by 6.5% per year for 7 years, then the value at the end of 7 years would be £85.46 (to the nearest penny).
Correct answer: False
True
Q4.
If 53 increased by 23% for 'n' number of years, which of the following would provide a general formula to work out how much it had grown to?
0.23 x 53^n
1.23 x 53^n
53 x 0.23^n
Correct answer: 53 x 1.23^n
Q5.
If an antique grew 6.5% a year for 7 years from the purchase price of £55, it would be worth £85.46 (to the nearest penny).
Correct answer: False
True